How much will a $60,000 home equity loan cost per month after the December Fed rate cut?
With interest rates elevated for much of the last three years and the inherent risk of borrowing home equity well known to homeowners, it was understandable if owners looked for alternative ways to borrow large sums of money.
But in the economic climate of 2025, the benefits of home equity loans are becoming clearer. Not only are home equity levels at a record high in the country right now, but interest rates on home equity loans are materially lower than popular alternatives like credit cards and personal loans. This now makes borrowing with a home equity loan one of your better options and especially so if considering a large, five-figure amount like $60,000, in order to keep interest costs as minimal as possible.
Still, with your home functioning as collateral here and the potential for foreclosure if payments aren't made on time each month, the math here needs to support a loan of this size. Fortunately, this is easy to calculate as the product comes with a fixed interest rate that makes for easier budgeting. And after the Federal Reserve's latest interest rate cut was issued last week – the third one in the last four months – a $60,000 home equity loan is even more affordable now than it had been in much of the recent past.
So, how much will a $60,000 home equity loan cost per month now, after the December 2025 Fed rate cut? Below, we'll break down the numbers that homeowners need to know.
See how much home equity you'd be eligible to borrow here.
How much will a $60,000 home equity loan cost per month after the December Fed rate cut?
A $60,000 home equity loan can help finance a series of expenses and, if used for select projects, the interest paid on the loan may even be tax-deductible. Here's how much it would cost monthly right now, calculated against today's new, lower rates and two common repayment periods:
- 10-year home equity loan at 8.18%: $733.68 per month
- 15-year home equity loan at 8.13%: $577.90 per month
For reference, here's what a $60,000 home equity loan would have cost monthly after the Fed's prior rate cut in October:
- 10-year home equity loan at 8.20%: $734.32 per month
- 15-year home equity loan at 8.15%: $578.60 per month
And here's how much it would have cost in February 2025, when rates were even higher:
- 10-year home equity loan at 8.55%: $745.52 per month
- 15-year home equity loan at 8.50%: $590.84 per month
So payments here are both lower than they were earlier in the fall and considerably more affordable than they were at the start of 2025. And while $12 or so less may not feel like a lot each month, those savings can be considerable each year and especially so when tallied up over the 10- and 15-year repayment periods many will agree to.
See how affordable your current home equity loan rate offers are now.
The bottom line
A $60,000 home equity loan currently comes with monthly payments for qualified borrowers ranging from $578 to $734, approximately. That makes now one of the more affordable times in recent memory to borrow this much home equity, largely due to a series of Fed rate cuts that have caused interest rates to decline this year. Just be sure to calculate your costs with precision and know your exact budget to avoid any risk of foreclosure. But, if you need this much money and can afford to secure the equity at today's new, lower rates, this may be one of the better borrowing options to consider right now.
